PRESENTATION
ON
THE KZN PROVINCIAL PERSPECTIVE
ON B-BBEE IMPLEMENTATION
SMME/B-BBEE CONFERENCE
DURBAN, ICC
31 August 2010
BACKGROUND
BLACK ECONOMIC EMPOWERMENT (BEE) STRATEGY

Since 1994: BEE was a major thrust of all government policies YET there was no
coherent strategy for its implementation.

In 2000: BEE Commission released a report which gave the first attempt at broadly
defining BEE.

The BEE Commission’s report laid a good foundation for the development of
strategy towards the implementation of BEE.

In 2003: a strategy for BEE was released which defined BEE as:

An integrated and coherent socio-economic process that directly contributes to the
economic transformation of the country and brings about significant increases in the
numbers of black people that manage, owned and control the country’s economy, as well as
significant decreases in income inequalities.

Thus the BEE process will include elements of the scorecards: Ownership, Management
Control, Employment Equity, Skills Development, Preferential Procurement, Enterprise
Development as well as Socio-Economic Development.
KZN-B-BBEE STRATEGY
VISION: A deracialized provincial economy in whose mainstream a critical mass of Black people
participate meaningfully, in terms of control and ownership of private sector enterprises, and
hold operational, professional, management, and executive positions in organizations of both
the private and public sectors, in proportion to their demographic weight.
STRATEGIC GOALS ARE:
 Increase in the number of black people who have ownership and control of existing and new
enterprises ( in priority sectors).
 Increase number of Black people who hold senior management and executive positions in
enterprises.
 Increase in the proportion of the ownership and management of economic activities vested in
community-based and broad-based associations and enterprises, collective enterprises,
trade unions and employee trusts.
 Increase in the number of Black young people, particularly rural young people, who acquire
skills.
 Increase in land ownership by black people, etc.
KZN-B-BBEE STRATEGY
CORE ELEMENTS OF THE STRATEGY:
 Enterprise Development.
 Skills Development (mainly unemployed youth).
 Empowerment of target group enterprises (including Black-Engendered
and youth owned enterprises) through Preferential Procurement.
 Empowerment of persons or groups/communities to increase their
ownership and control of enterprises and other productive assets such as
land.
 Enforcement of the Employment Equity Act.
 Encouragement of Corporate Social Investment from large companies
KZN-B-BBEE STRATEGY
POLICY INSTRUMENTS:

Various Legislations and Regulations

Preferential Procurement

Institutional support arrangements

Partnerships

Enterprise Development

Financing (Provincial Empowerment Fund)
KZN-B-BBEE STRATEGY
ROLE PLAYERS:

All Government Departments

Financial Institutions and other Funding Agencies

State Owned Enterprises/ Public Entities

Organised Business

BEE Verification Agencies

Community-based Organisations, etc.
KZN B-BBEE IMPLEMENTATION
PROGRAMMES
IMPLEMENTATION PROGRAMMES
 INFORMATION DISSEMINATION
 Improving knowledge of Black enterprises (on amongst other things, Incentives Schemes
and available funding and/or financial support).
 Sharing information on BEE opportunities.
 Sharing information on government economic empowerment strategies and relevant
legislations.
 Sharing information on employment opportunities, etc.
 SKILLS DEVELOPMENT
 Co-ordination and reporting on all initiatives of the organizations involved in skills
development in the province such as FET,SETAs and JIPSA.
 Redesign and implementation of government’s learnership and apprenticeship programme
through the Skills Development Fund.
IMPLEMENTATION PROGRAMMES
 FINANCING (PEF)

Co-ordination of available BEE funding instruments.

Funding of empowerment transactions/deals and structure financial arrangements.

Working with financial institutions on the financing of major BEE projects by private sector,
financial institutions and the public sector development finance institutions i.e. NEF,IDC, and
DBSA.
 PREFERENTIAL PROCUREMENT

Encouraging big enterprises to comply with BEE legislation and relevant transformation
strategies i.e. BEE Codes of Good Practice.

Increasing the level of preference for target groups, i.e. Black Owned, Black Empowered and
Black Engendered enterprises by setting clear targets.

Ensuring that all Government Departments, SOEs and Public Entities implement the set target
on procurement.
IMPLEMENTATION PROGRAMMES
 ENTERPRISE DEVELOPMENT (SECTOR MATRIX)
 Focus on provincial priority sectors.
Focus on ‘graduating’ selected small Black-Owned enterprises into medium and large enterprises
within selected sectors.
 Direct and/or influence activities of other programmes towards prioritised and selected sectors.
 Direct financing, procurement and skills development in a more focused and sustained manner.
Criteria for selection: (a) Demonstrate potential to grow; (b) belonging in one of ffl. priority sectors:
Manufacturing, Furniture, Clothing and Textile, Entertainment, ICT, Tourisms, Agriculture, Property,
Agriculture and Agro-processing, and Freight and logistics, to name a few...
IMPLEMENTATION PROGRAMMES
 PARTNERSHIP AND STAKEHOLDER RELATIONS
Facilitating government partnerships with, and the establishment of associations of small Black
enterprises at sectoral and economic-wide levels.
Forming of partnerships with various organizations (small and large) in order to facilitate the
implementation of BEE programmes across the province.
 BEE MONITORING AND EVALUATION
Conducting an audit of BEE performance in the province and establishing baselines for targets.
Adjusting KZN BEE scorecard targets in order to take account of baselines through the partnership and
stakeholder relation programme and BEE Implementation Team.
Monitoring and evaluation of the status of BEE performance in the province.
Conducting an annual review of the strategy as well as its programmes.
KZN B-BBEE IMPLEMENTATION
STRUCTURE
FOUR WORK STREAMS:
 Preferential procurement
 Enterprise development
 Finance
 Skills Development
NB: All above-mentioned Work Streams are comprise of all provincial Government
Department s and other relevant Stakeholders.
KZN B-BBEE IMPLEMENTATION
STRUCTURE
DEVELOPMENTS AND STRUCTURES FORMED TO DATE...
 B-BBEE Ombudsman Office.
 KZN B-BBEE Advisory Council (Chaired by the Premier).
 B-BBEE Implementation Team and Work Streams (represented by all depts.).
 Currently finalising the Provincial BEE Procurement Policy Instrument (50%)
 Currently undertaking BEE Verification of Government and Public Entities
THE END…
Ngiyabonga